• "Gifted Deposit" - Can My Vendor Pay My Stamp Duty

    By Guest on 30th Nov 2018

    The vendor has suggested as we were concerned the house we are buying needs a little cosmetic work done, hes so keen not to lose us as buyers (i know the man on a professional basis & hes going through an expensive divorce, so we are aware of his situation), that if we wanted to save funds for cosmetic work on the property, that he would accept £320k offer on the property, but would pay us £5k of the stamp duty (his solicitor said this can be made as a gifted deposit).
    If we/you inform Santander that the vendor will proceed on the basis of £320k (i.e £304k mortgage + our £16k deposit), he will then pay us back the £5k stamp duty via transfer between solicitors after completion of the sale. It will be no problem in paying hmrc the stamp duty because apparently that only has to be done within 28 days of the sale completion. Essentially he is saying he will accept £315k for the property, but we pay £320k, so we dont have to pay stamp duty from our savings & that from the lenders funds, he then pays us back £5k. The vendors solicitor says we shoukd inform tge lender of this though. Any advise gratefully received. Regards

    We dont suspect this has any effect on the ltv rate because a/we are still paing a 5% deposit of £16k of the £320k purchase price and b/ the property has a market value of approx £350k.

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